Previously dedicated as a journal for my book project, the Round Table is an area where I'll be sharing lessons learned, take away messages, and engaging ideas during my MPH program at Johns Hopkins Bloomberg School of Public Health. As always, the goal is to inform, challenge, and inspire. Use the side archive to find select titles.

Saturday, June 27, 2009

Wal-Mart – A Preferential Option for the Poor?

The Commitment to Justice Conference in Jesuit Higher Education was held at Fairfield University with Faculty, Jesuits and Administrators from over 32 national and international Jesuit Universities. I will be posting reflections from the different panels and seminars attended.

Fr. Stephen Rowntree SJ knew the session’s topic would generate a crowd. The standing room only classroom was there to hear his “What Wal-Mart Reveals about the Global Economy” presentation. Judging by the engaging dialogue post presentation one could say it did not disappoint.

The lens of choice for this academic exercise was simply justice. Is Wal-Mart a corporation that is doing justice work? It appeared the hole had already been dug as an early show of hands overwhelmingly found the basic view of Wal-Mart to be “somewhat unfavorable” with “quite unfavorable” as the closest second. What jumps to mind when you hear Wal-mart and justice? I immediately thought of low waged workers with limited (or no) benefits, no unions and small suppliers being run out of town.

Now imagine the intrigue when Fr Rowntree SJ in front of a cohort of faulty, administrators and alums of Jesuit universities called Wal-Mart a store that has a preferential option for the poor. It is no small reference as the preferential option for the poor is one of the core principles of Catholic Social Teaching and heralded as a rallying call by former Jesuit Superior Fr Pedro Arrupe SJ, referred to by one presenter as “the second founder of the Jesuits”.

Rowntree SJ acknowledges the lack of unions is a major problem in the equation but also staunchly supports the constructive benefits of the company. “Wal-mart employs 2 million people world wide, including 1.4 million in the US. The US work force is larger than the US Army" and it is the largest private employer in Mexico and Canada. He is quick to point out that it produces low skilled jobs for the young, the uneducated and the retired who otherwise would have difficulty finding work. In this light it is a company whose hiring practices are rooted in providing options to the many who have been left out of the capitalist system.

Wal-Mart grew from a single discount store in Rogers, Arkansas in 1962 to the world’s largest corporation (by sales) because of innovation – a favorite son of capitalism. According to Rowntree it revolutionized supply chain management by cutting out or squeezing the middleman. This may hurt the manufacturers and small suppliers but in a globalized capitalist system such is the way of life. Furthermore, Wal-Mart implemented a tracking/stocking inventory system that allowed it to lower its margins. Couple these innovations and what you get is the ability to greatly reduced the cost of the items sold. Here is where the second point is cemented. Wal-Mart has a preferential option for the poor due to its low low prices. Not only does it allow people to save money for goods they need and otherwise not be able to afford, but the money saved can be utilized for other spending or saving. Thereby, either further stimulating the economy or helping the costumer stay above water.

Although this was not mentioned in the session if we look at Wal-Mart’s new prescriptions for under $4 program and 90 day fillings for $10 we see the instant impact of Wal-Mart directly on access to cheap medications and medical savings in the community. “For instance, alendronate, the generic version of osteoporosis medication Fosamax, will be added to the list. Company pharmacies will fill 30-day prescriptions of alendronate for $9 and a 90-day supply for $24 at a comparison of $54 and $102, respectively, that women previously paid for the same amounts, the company said.” (Link to quote)

Of course like much of big business the devil is in the details and I have not research or studied them in this case. It is certain that beyond lacking health benefits, manipulating part time versus full time and the lack of unions are troubling, but the constructive creation that comes from the process has made the issues much more complex. The session did alter my view of Wal-Mart. It went from clearly “somewhat unfavorable” to a cloudy and murky “somewhat unfavorable”.

19 comments:

The same complexities apply to Starbucks -- a favorite target of my "intellectual, liberal" friends. (I am a social liberal; they are "liberals" of the "aren't I cool" type.)

For example, Starbucks is a huge company that has responded to consumer demand in a variety of ways: they have gotten rid of their drink sleeves for the most part; they have turned all their paper products into "green" versions; and they have started to focus on fair trade coffees.

Sure, not all their coffees are fair trade, but the fact that any of them are is huge -- imagine the impact a company this large has on the world coffee market.

Wal-Mart -- much the same. It is a monolithic beast and we cannot expect it to change overnight or ever be perfect.

That said, I never shop there. But that is a privilege of wealth more than anything, is it not? I.E., I do not NEED to shop there. :)

"it revolutionized supply chain management by cutting out or squeezing the middleman. This may hurt the manufacturers and small suppliers but in a globalized capitalist system such is the way of life." I'm really uncomfortable with this. It's OK to hurt the manufacturers and small suppliers? That's just the way it is? That's also the sort of thing that leads to low-wage sweatshops in foreign countries -- so that the suppliers can meet Wal-Mart's demands for cheap goods.

very similar to the almost annual argument that Nick Kristof makes - sweatshops and brutal labor conditions are good for people, because otherwise they would have nothing

that's sad and twisted logic, especially coming from a Jesuit priest, who should be demanding that all individuals deserve a living wage, access to healthcare, and freedom to organize

were these 2 million people "who have been left out of the capitalist system" unemployed and destitute before walmart came along and saved them? or were they working for the same manufacturers and small suppliers who were undercut by walmart's innovations (aka cheap labor)?

the continued growth of walmart is the exact opposite of what we need in order to create an economy that truly has a preferential option for the poor

I personally disagree with Wal-Mart's business ethic, but sounds like it actually serves the poor. The biggest evil in this situation is that the American Health care system that has been allowing the capitalism run wild.

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Thank You

Thank you for visiting the Blog! Make sure you come back to read about the different cities and non-profits where I will be volunteering. Finally thank you for all the support and donations from family, friends, and mentors at Fairfield University.